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middle class family. >> one mom said to me in michigan, that's four months groceries. that's commuting back and forth to work in gas for up to three years. i mean, that's a lot of money. >> reporter: democrats want higher taxes on families earning $250,000 a year and over. republicans want tax rates to stay where they are. taxes seem to be the biggest obstacle to a compromise but others want to see government spending put in check. >> the president is doing nothing about the addiction of his administration that he has to spending. he's the "spender-in-chief." >> reporter: president obama says he is willing to do that. >> i offered over a trillion dollars in additional spending cuts so that we would have $2 of spending cuts for every $1 of increased revenue. >> the senate is in recess. >> reporter: the senate reconvenes this morning so as americans celebrate the beginning of 2013, they may wake up wishing it were 2012 when they had more money in their pockets. i'm andrew spencer reporting. >>> and just to clarify, that midnight deadline is 9 p.m. pacific time. you can keep track of the
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